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Microfinance industry recorded a growth of 51 per cent year-on-year in the second quarter of 2018-19 with total Gross Loan Portfolio (GLP) standing at Rs 1.46741 trillion, said a report on Monday.

Of the total, Non-Banking Finance Company-Microfinance Institutions (NBFC-MFIs) accounted for a significant chunk.

While the total number of active microfinance accounts for the overall industry was at 77.7 million with a growth of 27 per cent, NBFC-MFIs witnessed a growth of 32.9 per cent with 34.3 million accounts in the period, said the report by Microfinance Institutions Network (MFIN).

As of September 30, 2018, NBFC-MFIs held the largest share of portfolio in micro-credit with total loan outstanding of Rs 540.18 billion or 37 per cent of total micro-credit universe.

Banks were the second largest provider of micro-credit with a loan amount outstanding of Rs 482 billion (33 per cent). While small finance banks accounted for 17 per cent of the loans, NBFCs provided 12 per cent. The rest came from other sources.

MFIN CEO Harsh Shrivastava said the industry has seen a healthy improvement in the quality of the portfolio since last year which is an encouraging sign for the industry.

"The growth for overall industry including NBFC-MFIs has shown a good pace which we expect will be maintained in the coming quarters too. We continue to see robust investors' confidence especially in the NBFC-MFIs segment which is due to sustained credit discipline in the sector," he said.

MFIN is the industry association and self-regulatory organisation for the microfinance industry in India. Its current membership/associates consist of 48 NBFC-MFIs.